‘34 businesses closed down’

Page 15, March 3, 2008
Story: Emmanuel Adu-Gyamerah

THIRTY-FOUR businesses in Accra belonging to foreign nationals who had entered the local distributive commercial trade against the Ghana Investment Promotion (GIPC) Act have been closed down.
The Deputy Minister of Finance and Economic Planning, Professor George Gyan-Baffour, who made this known in Parliament yesterday, said under the Ghana Investment Promotion Centre (GIPC) Act 478, 1994, non-Ghanaians wishing to undertake trading activities in the country were required to invest a minimum foreign equity capital of $300,000 either in goods or cash or a combination of the two.
He was answering a question posed by the Member of Parliament (MP) for Ashaiman, Mr Alfred Kwame Agbeshi, who had wanted to know whether foreign nationals who had entered the local distributive commercial trade had complied with the requirements of the law on foreigners trading in Ghana.
Professor Gyan-Baffour said in order to ensure compliance with these requirements, a national task force was set up to monitor activities of non-Ghanaians in the trading sector.
He explained that when the task force started operation, some companies were found to be trading without GIPC registration permit while others were operating in marketplaces, such as Makola.
Under the law, such companies must also employ at least 10 Ghanaians.
Prof. Gyan-Baffour said while those who were operating without permit were asked to regularise their operations, those operating in the marketplace were advised to relocate elsewhere.
He added that the GIPC Act was under review and one of the key features to be introduced would be a significant upward review of the minimum foreign requirement for the trading sector to at least $1 million.
The deputy minister explained that the measure was to ensure that the country attracted a certain level of trading houses and preserve the middle and lower end of the retail sector for Ghanaians.
Answering another question posed by the MP for Kintampo South, Mr Stephen Kunsu, he said the Ministry of Finance and Economic Planning had identified late submission of documents by Ministries, Departments and Agencies (MDAs) to the Controller and Accountant-General’s Department (CAGD) and late submission of incomplete and inaccurate information, among others, as causes that delayed the payment of claims to pensioners.
Mr Kunsu wanted to know measures put in place to remove the frustrating bureaucratic bottlenecks that confronted would-be retirees in accessing their claims.
Professor Gyan-Bafour said the ministry had started educating the MDAs about the need to submit the pension documents of their would-be retired staff on time in addition to setting up a pension committee to resolve some of the grey issues involving pension.
In addition, the ministry had engaged information technology experts to automate the file tracking system at the pension section, explaining that the project, which is expecting to be completed by April, 2008, would forestall the delays.
When it was the turn of the MP for Ketu South, Mr Albert Zigah, he enquired from the deputy minister what plans the ministry had for the completion of the office buildings and staff accommodation at the Aflao Border to enhance efficient delivery of services by the Customs, Excise and Preventive Service (CEPS), Immigration Service and other government agencies.
Professor Gyan-Baffour stated that the ministry had reached an agreement with the Ghana Commercial Bank and Ecobank Ghana Limited for funding to complete the entire Aflao Border complex project.
He said the project would commence as soon as modalities for the repayment of the GH¢10.6 million are concluded and approved, adding that the project would be completed in three years.
Meanwhile the debate on the President’s State of the Nation Address to Parliament had been completed.
The MP for North Dayi, Ms Akua Sena Dansua, summed up the debate for the Minority while the Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, did so for the Majority side.
Ms Dansua expressed regret about the failure of the President to touch on the failures of his administration, such as his inability to fight corruption and the drug menace.
He blamed the President for the current polarised society, explaining that his gestures and pronouncements over the years had not been conciliatory.
For his part, Mr Baah-Wiredu stated that there was the need for an effective planning to lay down a solid foundation for future development.
“This is what the President has done over the last seven years,” he said, and called for lessons to be learnt from the country’s political dispensation to ensure a continuous development to benefit the future generation.
He announced that a draft bill for the Northern Development Fund was nearing completion for submission to Parliament.